Donald Trump has confirmed the imposition of 25% tariffs on goods from Mexico and Canada, which will take effect at 5am UK time on Tuesday.

The US president confirmed these tariffs during a speech at the White House, where his announcement led to a sharp decrease in US stock prices.

These tariffs will significantly impact US companies with factories in Canada and Mexico, particularly car manufacturers.

President Trump stated: “If they want to avoid tariffs, they will have to build their car plants, and other such facilities, in the United States, where there will be no tariffs.”

He added that there’s “no room for a deal” that could prevent the imposition of these tariffs, even if the flow of fentanyl into the US is curbed by neighboring countries.

As of 12:01am Eastern Standard Time (5:01am GMT), Mexico and Canada will face tariffs of 25%, with a tariff of 10% for Canadian energy, confirmed by the Trump administration.